DP14 - FDIC InsuranceCoverage Questions And Answers Rated 100% Correct!!

1. A client has three single ownership savings accounts and one joint money market account. Assuming all accounts have balances of $10,000, how does the FDIC calculate the client's insurance coverage for these accounts? A. All four account balances are added together B. All four accounts are separately insured C. The three single accounts are added together and insured. If the total from the three single accounts is less than the insurable amount, funds from the joint account can be added to reach the maximum insurable balance D. The client's three single accounts are added together and insured, and the client's share of the joint account is separately insured - ️️D 1BE4804962FBCFF Not answered. The correct answer is D. A and B are incorrect because FDIC insurance coverage of an individual's accounts in any one institution are calculated based on ownership categories. C is incorrect because the client's share of the joint account would be insured separately. 2. The FDIC has many roles. Which option describes two capacities the FDIC performs following a bank failure? A. As the teller at the bank's drive thru and the underwriter of the bank's loans B. As the buyer of the failed bank and the notifier of that bank's customers C. As the closer of safe deposit boxes and the opener of new CD accounts D. As the insurer of the bank's deposits and the receiver of the failed bank - ️️D D8CA390946A24F24ABAA85924F9AC4E3 Not answered. The correct answer is D. A, B, and C are incorrect because when a bank fails, the FDIC acts as the insurer of the failed bank's deposits and the receiver of the failed bank. 3. One of the FDIC's most important functions is to insure the deposit accounts of millions of Americans in all the FDIC-insured financial institutions across the country. What fund does the FDIC administer? A. Federal Insurance Fund (FIC) B. Deposit Insurance Fund (DIF) C. Insurance Deposit Fund (IDF) D. Secure Deposit Fund (SDF) - ️️B 0B233E8C715A4903A92673E6536F3489 Not answered. The correct answer is B. A, C, and D are incorrect because the FDIC administers the Deposit Insurance Fund (DIF).4. James Johnson has single ownership accounts in two separately chartered financial institutions. How does FDIC calculate the insurance coverage for James' accounts? A. Each account is insured separately B. Accounts are aggregated and the total is insured for up to $250,000 C. The oldest account is insured first D. The account with the largest balance has the priority for insurance coverage - ️️A F4480BF7282CB424963E1 Not answered. The correct answer is A. B, C, and D are incorrect because accounts held in separately chartered financial institutions are not added together and are insured separately. 5. What does that term ''pass-through" deposit insurance coverage mean? A. The account is opened by individuals who are passing through the area B. Funds in the account are owned by the principal not the third party who set up the account C. Ownership of the funds passes through the account to the bank D. The FDIC passes the insurance through the account to the FDIC's insurance fund - ️️B AB69636ED54D4A768B2B9CF3311EB241 Not answered. The correct answer is B. A, C, and D are incorrect because a passthrough account is one set up by a third party with funds owned by the principals of the account. 6. Your marketing department wants to place an advertisement in your branch promoting a new deposit product. Which statement provides accurate signage instructions? A. Signage must contain the ''Member FDIC'' logo B. Any advertisement for a non-deposit investment product must contain the ''Member FDIC'' logo C. Any non-covered product or service must contain the ''Member FDIC'' logo D. ''Member FDIC'' signs are only required at the financial institution's principal place of business - ️️A 19BEE64DE4DD41DEB1D1FC43 Not answered. The correct answer is A. B is incorrect because any advertisement for a non-deposit investment product may NOT contain this logo. C is incorrect because advertisements for any non-covered product or service may NOT contain this logo. D is incorrect because insured depository institutions must display the official ''Member FDIC'' signs at each station or window where insured deposits are usually and normally received, both at a depository institution's principal place of business and in all its branches.7. Fred has five business accounts with your bank for Freddie's Fries, LLC: two operating accounts, two payroll accounts, and a commercial money market savings account. Which statement concerning business entity insurance is generally true? A. The checking accounts are insured but the money market is not B. Only the checking accounts are aggregated - the money market is insured separately C. All Fred's accounts are aggregated because they are under the same ownership and the maximum insurance is $250,000 D. Each account is separately insured up to $250,000 - ️️C